Correlation Between Fluor and SPDR Series
Can any of the company-specific risk be diversified away by investing in both Fluor and SPDR Series at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Fluor and SPDR Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluor and SPDR Series Trust, you can compare the effects of market volatilities on Fluor and SPDR Series and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Fluor with a short position of SPDR Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluor and SPDR Series.
Diversification Opportunities for Fluor and SPDR Series
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fluor and SPDR is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Fluor and SPDR Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Series Trust and Fluor is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Fluor are associated (or correlated) with SPDR Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Series Trust has no effect on the direction of Fluor i.e., Fluor and SPDR Series go up and down completely randomly.
Pair Corralation between Fluor and SPDR Series
If you would invest 265,675 in SPDR Series Trust on September 1, 2024 and sell it today you would earn a total of 35,425 from holding SPDR Series Trust or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fluor vs. SPDR Series Trust
Performance |
| Timeline |
| Fluor |
| SPDR Series Trust |
Fluor and SPDR Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluor and SPDR Series
The main advantage of trading using opposite Fluor and SPDR Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluor position performs unexpectedly, SPDR Series can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SPDR Series will offset losses from the drop in SPDR Series' long position.| Fluor vs. Cognizant Technology Solutions | Fluor vs. Prudential Financial | Fluor vs. United Airlines Holdings | Fluor vs. Southwest Airlines |
| SPDR Series vs. Promotora y Operadora | SPDR Series vs. UnitedHealth Group Incorporated | SPDR Series vs. Qulitas Controladora SAB | SPDR Series vs. Hoteles City Express |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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